Continue reading "Who is an angel investor?"
Whether you are trying to get your business up and running or need some additional working capital you may consider finding an angel investor. Many business owners seek out the help of an angel investor because they don’t want to take on additional debt financing or they are having a hard time even getting a business loan. However, before you seek out an angel investor it is important to know who you are looking for. Only by having a clear idea of who is an angel investor can you get to work attracting one. Here is what you need to know to answer the question-Who is an angel investor?
Continue reading "Smarter ways to create a balance sheet"
Are you a new business owner? As a new business owner you will need to quickly learn about a variety of different things like the balance sheet. Do you understand what the balance sheet is and what you need to do in order to make it work effectively? Creating your first balance sheet may seem like a daunting task and it can easily overwhelm you. A skilled financial advisor or a bookkeeper can help you with the creation of your balance sheet. The best way to avoid mistakes and to get your balance sheet to actually balance is by using a method called double entry bookkeeping. This article will guide you through the different parts of a balance sheet so you can understand exactly what it's all about.
When you are ready to invest some money into small businesses do you know what type of business is out there to make you money? There are a number of small business options to choose from that finding the right one for your money can be a bit of a challenge. Some people will invest in a business that is already up and running while others prefer to look for businesses that they can start up on their own. While everyone's preferences are different, there are numerous advantages to buying a small business.Continue reading "Are you ready to buy a small business"
Small business owners who focus on maintaining strong finances, for their business, are helping to insure their company's long-term survival. There are several steps that can help strengthen your business finances, and help to insure its continued growth and profitability. Savvy business owners understand that they cannot over look the need to continually be building on a strong financial foundation. If you are a business owner, here are some business finance tips-
Inventory investment is an integral part of your business' finances. This is because the amount of your small business's inventory investment, directly affects your profit, and cash flow. Most importantly, the management of your inventory, (for a business that sells products), is crucial to the success of your company. If you hold too much inventory on your shelves, or in your warehouse, you run the risk of getting stuck with inventory that you can't sell. If you hold too little inventory, then you are risking stock outs and loss of customer good will. Either problem can cost your business big money.Continue reading "What is inventory investment?"
We all know what it takes to be physically fit, but what about fiscally fit? Being smart about your money, and financially healthy takes practice, and a regimen just like physical fitness. The following are some tips for improving your fiscal fitness:
Investments are the production per unit time of goods, which are not consumed but are to be used for future production. In economics, investments can be both tangible and intangible assets and can include factories that companies are building or they can include the training that the company provides its new employees or training it provides its continuing employees. The reason that these are considered investments is that they are not being used by the company currently, but they are being used in the future to help make or sell the products. What is happening is that companies are investing in the time and materials they are going to need in the future, which include production facilities or trucks to ship the goods and the employees that are needed to produce the products.
If you have bad credit, many lenders are not going to be very willing to take a chance with lending your money, even if it is to get a business up and running. The reason for this is that people who have bad credit are more likely to default on their loans than people with good credit are, so it is a bigger risk than most lenders want to take. Even if you have bad credit you can still get financing for your business, you are just going to have to go about it in a different way.
Here are some tips that you can follow to help fund your business, even if you have bad credit.Continue reading "Funding a business with bad credit"
One option you have for financing your business is to use investors. Investors, whether they are angel investors or venture capitalists, will provide you with the funding that your business needs to get started. While there are plenty of investors around that are interested in investing in businesses, the chances of finding an investor without doing anything is slim to none. As a business owner if you want to use an investor to help your business gets started, you are going to need to do a few things to attract them to your business.
Here are the steps you will need to follow in order to attract investors to your business.Continue reading "How to get investors to fund your business"
Continue reading "Creating a business investment portfolio"
A business investment portfolio is more than a portfolio full of stocks and bonds. A true business investment portfolio is designed to bring as much money to your company as possible by listing attainable goals and clearly defining your risks. When you start creating your business investment portfolio, you need to find out exactly how much money you can use for business investments. After you have your chunk of change ready to invest, ask yourself the following questions:
Continue reading "How to calculate ROI (return on investment)"
Making the right decision on your return on investment (ROI) is very fundamental to making a good business decision. Whether you choose to invest in savings accounts, stocks, real estate or new business, making the best guess on a return on investment will better guide you in choosing among so many different investment options. Return on investment is one of the several approaches to building financial business wealth. Return on investment measures how effective a business uses its capital to generate profit and typically is based on the period of one year.
Continue reading "How can I tell if a market downturn is short or long term?"
For most investors, losing their hard earned money investing in the stock market is not an option. If you simply don't have the patience and your risk tolerance is low, then certainly the stock market may not be right for you. You can consider other investment options with fewer risks at least until you've done some personal research on the whole market performance of a given company. One option for minimizing investment fears is to invest in low cost market funds and hold on to them and making a little effort in buying and selling stocks according to the fluctuation of the market. In other words, your best choice is to invest in low risk mutual funds and maintain your investment plan no matter which way the market is moving because you know that it will move in a positive direction in the long run.
How you impress angel investors for your business can be asked by many different business owners that may be looking for some extra funds. Angel investors are also known as just angel, business angel or as an informal investor in Europe. An angel investor is an affluent individual who provides capital for a business start up. The angel investors will front money to the start up business in exchange for convertible debt or ownership equity. Angel investors are increasing in number and are beginning to organize themselves into angel groups or angel networks to share research and pool their investment capital. Start up businesses will want to have an angel investor for the money that the angel investor gives to the business. How to impress those angel investors is a big question for any start up business.Continue reading "Impressing angel investors...how to"
One aspect of your investment strategy that you must take into consideration is the liquidity of particular investments. The liquidity of an investment will be absolutely central to how you can meet your financial goals for your business and to what type of business you have and what your business' financial needs are.
The liquidity of an investment describes how readily available the value of that particular investment is. For example: cash that you keep underneath your mattress is the most absolutely liquid asset that you can have. Another form of assets that is also pretty liquid is the money that you have in a checking account. That money can be accessed pretty much immediately by simply writing a check. There are other investments that are more and less liquid. For example, some stocks are much easier to liquefy so that you can get that money that you have invested pretty quickly.
There are other investments which are much, much less liquid than these easily accessed stocks. For example, long-term bonds lock your money away for a long period of time as those bonds mature. You can liquefy your bonds earlier than the agreed date, of course, but if you do so, then you will pay a penalty and you will not be able to receive the full value of your investment. As an individual, you will probably be more familiar with the idea of the not-very-liquid IRA or the 401(k).